Annual Report 2016
Appendix:
basis of preparation
non-financial indicators
01 Heineken N.V. Annual Report 2016
Appendix: basis of preparation
non-financial indicators
Reporting principles
As we integrate Brewing a Better World in the way we manage our business, it appears only logical
to gradually move towards Integrated Reporting. For the 2015 Annual Report we made a first step
by disclosing a selection of non-financial indicators (KPIs). For this year’s report we further integrate
the most important non-financial KPIs and no longer publish a separate Sustainability Report.
The remaining non-financial KPIs will be disclosed at the end of March 2016, in the sustainability
section of our Company Website. This includes more detailed information on the actions we took
in 2016, case studies, an overview of data and the G4-reference table.
Operating companies in scope
The non-financial indicators in this report cover the performance of all our consolidated operating
companies from 1 January 2016 up to and including 31 December 2016, unless stated otherwise.
A different reporting period is applied to those indicators where the current reporting cycle does not
allow for reporting within the timelines required for the Annual Report. In this year’s review in a number
of indicators we include the following businesses for the first time: Desnoes & Geddes in Jamaica,
Heineken Malaysia Berhad, Pivovarna Lasko Union in Slovenia, APB Alliance Brewery in Myanmar
and Heineken South Africa.
The term ‘production unit’ means breweries, cider plants, soft drink plants, malteries, water plants and
combinations of these, at which malt, beer, cider, soft drinks and water are produced. Two packaging
material plants are also in the scope of production units, covering the manufacture of bottles and
crates. Other plants have been included too, such as a winery, distillery and ice production facilities.
Indicators in scope
The content of the report is based on the material aspects for both our Company and our
stakeholders and is directly linked to the Brewing a Better World strategy, our six focus areas and our
2020 commitments. We have selected the non-financial KPIs that are most material, based on the
following criteria:
––The KPI is a Brewing a Better World commitment
––The KPI is a new target we publicly disclosed in our 2015 report
––The KPI is not related to a target but part of one of the Brewing a Better World focus areas and
seen as important by our stakeholders
––The combination of KPIs should give a balanced – high level – overview of our progress in 2016.
Scope and materiality of indicators are approved on an annual basis by the Disclosure Committee,
and may be adjusted once a year with effect as of the following year.
Reporting systems
The main systems used for collection, validation and analysis of reported data:
––Safety data is reported quarterly via a global system named ARISO (Accident Reporting
& Investigation Software system)
––The collection and validation of environmental data have been integrated in Business Comparison
System (BCS). Production units submit environmental data on a monthly basis in BCS
––The Green Gauge reporting system allows us to monitor and report quarterly progress against
12 key areas, related to our commitments
––Other reporting systems include the Contract Lifecycle System (CLM) and the EcoVadis Platform
for Supplier Code and performance information, and Ethics Point for ‘Speak Up’ data
––The Annual Sustainability Survey is the source of information for all other data that is not covered
by the previously mentioned data sources.
Appendix: basis of preparation non-financial indicators
02 Heineken N.V. Annual Report 2016
Appendix: basis of preparation
non-financial indicators (continued)
Reliability and accuracy of data
Processes have been established for collection, review and validation of the non-financial data included
the reporting, both at local operating company and global level. Subject matter experts are involved
at various levels to validate and challenge the data and process.
HEINEKEN is continuing to work on formulating and applying uniform definitions and instructions for
reporting purposes, in order to improve the accuracy and comparability of data. Where possible, standard
calculations are being built into our systems to minimise errors. Despite the continuous strengthening of
our data collection processes and the fact that our operating companies and data owners have reported
to the best of their knowledge, in good faith and in accordance with agreed procedures, it is not possible
to ascertain 100% completeness of data contained in our report. Our operating companies are at differing
maturity levels with regards to implementing the various data collection processes. Where we have
any concerns, however, it is highlighted in the report.
HEINEKEN Global Audit is involved in monitoring KPIs’ reporting processes. A yearly risk assessment is
performed on all KPIs to determine the year-end audit approach. For this purpose, Global Audit is tracking
the methods for measurement and consolidation, and the developments in terms of newly acquired
operating companies or implementation of systems.
Apart from the annual review of the full reporting process, including monitoring the quality of control
procedures at various levels, the data ownership, the clarity of definition sets, and instructions to the
operating companies, Global Audit is involved on a local level to perform data validation audits for
a selection of indicators. For 2016, this included the environmental indicators, supplier code, tax and
local sourcing. Global Audit also checked all text statements in this report, based on materiality.
Deloitte provides limited assurance on selected indicators as described in detail in the Assurance Report
of the independent auditor on page 158 of the 2016 Annual Report, and for additional indicators on
page 37 of the 2016 GRI Table. All indicators in scope of external assurance are listed with an asterix (*)
on the following pages.
Definitions
We gather data in accordance with guidelines and definitions based on the Global Reporting Initiative
(GRI 4.0) Guidelines, unless stated otherwise. Overall, we aim to align with international standards,
and if not available we work with industry partners such as the Beverage Industry and Environmental
Roundtable (BIER), to develop common practices. For some measures in responsible consumption we
track the implementation in accordance to industry agreements (for example, labels on our packaging).
On the next pages you will find the Basis of Preparation of our reporting on non-financial indicators in the
Annual Report: indicators, definitions, scope, measurement criteria and reporting assumptions applied,
if any.
Appendix: basis of preparation non-financial indicators
03 Heineken N.V. Annual Report 2016
Appendix: basis of preparation non-financial indicators
Protecting water resources
Water
consumption
hl/hl and Water
consumption in
water-stressed
areas*
Commitment:
All sites: 3.5 hl/hl in 2020, 3.6 hl/hl in 2018; Water-stressed areas: 3.3 hl/hl
Baseline:
2008
Measurement/units:
––Total water consumption (m3) divided by Volume Produced
––hl (water intake) per hl of Volume produced.
Key definitions:
Hectolitre water intake per hectolitre volume produced of beer, cider, soft drinks and water.
Water intake minus water exported to third parties
Scope:
Beverage production only
Assumptions:
Water losses due to own water treatment are included, but due to third party treatment are not included
Number of sites
without water
treatment plant*
Commitment:
No sites will discharge untreated waste water to surface water in 2020
Baseline:
2015
Measurement/units:
Number of sites without waste water treatment plant, that discharge to surface water
Key Definitions:
See measurement
Scope:
All production sites
Total water
withdrawal
including sources*
Commitment:
G4-EN8 GRI requirement
Measurement/units:
Water consumption (m3) per water source
Key definitions:
The total volume of water withdrawn from the following sources:
––Surface water, including water from wetlands, rivers, lakes, and oceans
––Ground water
––Rainwater collected directly and stored by the organisation
––Waste water from another organisation
––Municipal water supplies or other water utilities.
Scope:
All production sites
Assumptions:
Flows of water that are exported to third parties are subtracted from the total
Wastewater
quantity*
Focus area:
Wastewater coming from the brewery
Baseline:
2008
Measurement/units:
––All wastewater coming from the brewery (m3)
Key Definitions:
All wastewater coming from the brewery
Scope:
All production sites
* Deloitte has provided external, limited assurance on this indicator
04 Heineken N.V. Annual Report 2016
Appendix: basis of preparation non-financial indicators
Protecting water resources (continued)
Water discharged
in surface water
and third party
wastewater
treatment system*
Commitment:
No sites will discharge untreated waste water to surface water in 2020. GRI requirement G4-EN22
Measurement/units:
––COD stands for Chemical Oxygen Demand, which is a measure for the pollution of water with organic material
––Effluent organic load to surface water (kg COD)
––The volume of wastewater treated expressed in m3.
Key definitions:
––The indicator relates to the pollution load of the effluent going to surface water from our breweries. This excludes the waste
water which is treated by third parties
––Waste water treatment plant is a plant removing contaminants from the brewery’s wastewater and producing environmentally
safe treated wastewater, before releasing it into the environment.
Scope:
Beverage production only
Assumptions:
In case of absence of measurements, the effluent emissions can be estimated (temporarily) using the HEINEKEN established
emission factors
Number of
production units
in water-stressed
areas that started
to implement
action plan for
Water Balancing*
Commitment:
By 2020 the 23 sites in water stressed watersheds will significantly balance the volume of water that is not returned to the local
watershed by financing and supporting local projects that aim to: conserve or restore water quantity, quality or biodiversity in the
local watershed; and/or improve access to clean water for the local communities;
In 2016 13 production units started implementing their action plan.
Measurement/units:
Sites that have started the activities necessary to start with Water Balancing projects. Typically the Water Balancing project
sequence is :
i) Stakeholder Engagement with UNIDO
ii) baseline study (if necessary)
iii) Project selection and establishing partnership(s)
iv) Fieldwork
v) Monitoring progress
Key definitions:
––Water stress refers to the ability, or lack thereof, to meet human and ecological demand for water. Compared to scarcity, “water
stress” is a more inclusive and broader concept. It considers several physical aspects related to water resources, including water
scarcity, but also water quality, environmental flows, and the accessibility of water
––Water balancing is redressing the balance in water-stressed areas between the amount of water we source from the watershed
and the amount that is not returned because it is used in our products, and through evaporation
––Water balancing projects are Projects that aim to conserve or restore water quantity, quality or biodiversity in the local watershed;
and/or improve access to clean water for the local communities
––A Water Balancing project is started when the baseline study (ii) is kicked- off (when necessary) or when the Memorandum of
Understanding (MoU) with the implementing partner (iii) has been signed.
Scope:
23 production sites in water stressed water sheds that will take priority in our water resources considerations
* Deloitte has provided external, limited assurance on this indicator
05 Heineken N.V. Annual Report 2016
Appendix: basis of preparation non-financial indicators
Reducing CO2 emissions
Reduction
CO2 emissions
in production/
reduction
CO2 emissions
since 2010*
Commitment:
6.2 kg CO2/hl in 2020 (40% reduction in 2020 compared to 2008 baseline)
6.5 kg CO2/hl in 2018
Baseline:
2008
Measurement/units:
––CO2-equivalent emissions (direct and indirect) per hl (per hl produced)
––Total CO2 eq. Emissions (Energy + Refrigerants) (kg) divided by Volume Produced.
Key definitions:
This indicator includes CO2-eq emissions caused by:
––direct emissions from combustion of fuels
––indirect emissions from imported heat and electricity
––emissions from refrigerant losses.
The emission factors for those can be either:
––default emission factors (from IEA, etc.)
––specific emission factors set by the site.
Scope:
Beverage production only
Assumptions:
Emissions associated with exported flows of electricity/heat are subtracted from the total.
Renewable sources (wind, solar, biomass etc.) have an emission factor of 0g CO2/MJ
Percentage
(%) of thermal
energy coming
from renewable
sources*
Commitment:
GRI requirement G4-EN3. % of thermal energy coming from renewable sources
Baseline:
2014
Measurement/units:
Quantity of renewable thermal energy use (MJ) divided by total thermal energy use (MJ).
(Note: this includes logistics and own generated heat from biogas)
Key definitions:
Quantity of thermal energy coming from: Biomass, Biogas, Solar thermal and imported heat (with 100% renewable
% and 0g CO2/MJ)
Scope:
Beverage production only
Assumptions:
Emissions associated with exported flows of electricity/heat are subtracted from the total
Percentage (%)
of electrical
energy coming
from renewable
sources*
Commitment:
Percentage (%) of electrical energy coming from renewable sources
Baseline:
2015
Measurement/units:
Quantity of renewable electrical energy use (kWh) divided by total electrical energy use (kWh)
(Note: this includes own generated electricity from biogas)
Key definitions:
Sources can be:
––Own renewable production = all electricity generated from renewable resources on-site (wind, solar, biogas)
––Imported electricity under green certificates = all electricity streams for which certified green electricity is purchased. For some
countries this is not 100%, but a smaller fraction.
Scope:
Beverage production only
Assumptions:
Exported electricity is fully subtracted from imported electricity (rather than also taken account of the own-renewable production
and subtracting from the mix of import and own-production). The part of the country specific electricity mix that is generated
using renewable resources is not included in the numbers we report
* Deloitte has provided external, limited assurance on this indicator
06 Heineken N.V. Annual Report 2016
Appendix: basis of preparation non-financial indicators
Reducing CO2 emissions (continued)
Total thermal and
total electricity
consumption/
reduction since
2008*
Focus area:
Related to the CO2 emissions reduction target
Baseline:
2008
Measurement/units:
––MJ (Thermal + Electrical) per hl (VolPr, Volume produced)
––Total thermal energy consumption MStar (MJ/Volume Produced) and Total electricity consumption Mstar
(kWh/Volume Produced)
––The latter is in kWh and has to be multiplied with 3.6 (MJ/kWh) to get to MJ.
Key definitions:
In absolute terms: consumption of thermal and electrical energy in MJ
In relative terms: consumption or thermal and electrical energy per unit produced in MJ/hl beer, cider, soft, drinks and water
This indicator includes all energy use, except:
––Fuels for on-site logistics
––Heat and electricity from own generate biomass/biogas.
Scope:
Beverage production only
Assumptions:
Flows of electricity/heat that are exported to third parties are subtracted from the total. Fuel losses from generators
and CHP are excluded
Waste destination
split and
absolute value*
Focus area:
Report on number of sites with zero waste to landfill (less than 2% of co-products and waste to landfill)
Measurement/units:
Kilograms of co-products and waste to landfill, dump and/or unknown destination is divided by the total amount
of co-products and waste produced
Key definitions:
Destination of residual products from the brewing process: either recycled into feed, material loops, compost
or energy, or – when not recycled – incinerated or sent to landfill
Scope:
All production sites
Assumptions:
We assume all waste streams without destination are landfilled
Reduction CO2
emissions in
distribution
(Europe,
Americas)*
Commitment:
Target – 20% reduction of the kg CO2/Hl traded for distribution of finished goods vs baseline year
2018 milestone: Reduce the CO2 emissions from distribution by 16% in Europe and 0% in the Americas
Baseline:
2010 for Mexico and Netherlands
2011 for all other HEINEKEN operating companies
Measurement/units:
––if fuel consumed available, kg CO2 = litres of fuel consumed * emission factor for type of fuel (kg CO2/litre)
––if fuel consumed not available, kg CO2 = Tons transported * kilometres transport * emission factor for type of vehicle
(ocean, road, rail, barge, size of the truck, fuel type, etc.) in kg CO2/ton.km
––kg CO2/Hl traded.
Key definitions:
This indicator refers to CO2-eq emissions from outbound distribution of finished goods and returns of empty packaging material.
Green Distribution is the HEINEKEN standard model to calculate and report CO2 emissions generated from distribution operations
Scope:
––Geography: 24 operating companies (all Europe*, Russia, Belarus, Mexico, USA, Brazil) outbound transport in HEINEKEN control
* Excluding Slovenia as it was not part of the HEINEKEN Group when the baseline was set
––Markets: Domestic Primary/Secondary, Export
––Activities: Transportation (owned and outsourced) until change-of-ownership
––Products: Finished goods and returnable packaging (own production and third party products)
––Flows: Delivery to Customer, Inter-unit finished goods, Inbound finished goods from supplier.
––Out of scope:
––Brewing and Warehousing flows and emissions
––Non-finished product shipments (Packaging materials, Tanker beer, promotional materials)
––Shipments where the operating companies does not have ownership of the products (ExWorks exports/deliveries, self-collections).
* Deloitte has provided external, limited assurance on this indicator
07 Heineken N.V. Annual Report 2016
Appendix: basis of preparation non-financial indicators
Reducing CO2 emissions (continued)
Percentage (%)
green fridges
(of total number
Of fridges
purchased
in 2016)*
Commitment:
Milestone 2018: 100% green fridges purchased
Measurement/units:
Number of fridges purchased and % of green fridges
Key definitions:
All fridges purchased in 2016 having one of more of the four characteristics of ‘green fridges’ in order to reduce the HEINEKEN
Energy Efficiency Index (HEEI):
––Use of hydrocarbon refrigerant
––LED illumination
––An energy management system
––Energy-efficient fans.
Scope:
67 HEINEKEN operating companies
Percentage (%)
reduction CO2
emissions
since 2010*
Commitment:
2020 commitment: Reduce the CO2 emissions of our fridges by 50%
Baseline:
2010
Measurement/units:
% reduction of CO2 emissions
Key definitions:
This indicator refers to CO2-eq emissions as a result of the electricity used by beverage fridges (branded and not branded)
delivered to HEINEKEN warehouses in the reporting year
Cooling equipment consumes electricity. The Green Fridges use less electricity than the 2010 fridge models. The reduction
of electricity consumption in % compared to baseline year 2010, is converted into an equal (1:1) % reduction of CO2 emissions
(change of grid electricity factors over time is excluded, to present only the improvement of the fridges)
Scope:
67 HEINEKEN operating companies
Assumptions:
Open front fridges are not in scope/Other type of fridges are not in scope (e.g. glass coolers)
* Deloitte has provided external, limited assurance on this indicator
08 Heineken N.V. Annual Report 2016
Appendix: basis of preparation non-financial indicators
Sourcing sustainably
Percentage (%)
of our main
agricultural raw
materials from
sustainable
sources*
Commitment:
2018: Aim for at least 25% of our main raw materials to come from sustainable sources
2020: Aim for at least 50% of our main raw materials to come from sustainable sources
Baseline:
The definition of the KPI has changed in 2016 compared to 2015. For the first time, we looked across all our main raw materials,
meaning sugar beet, sugar cane, rice, sorghum, wheat and maize were included, alongside barley, hops and apples
Measurement/units:
Volumes contracted in 2016 for delivery in 2017 are reported in 2016 sustainability report
Contracted sustainable volumes (tonnes)/Total contracted volumes (tonnes)
Key definitions:
We follow the definition of the Sustainable Agriculture Initiative (SAI): The efficient production of safe, high quality agricultural
products, in a way that protects and improves the natural environment, the social and economic conditions of farmers, their
employees and local communities, and safeguards the health and welfare of all farmed species
––Contracted sustainable volumes (tonnes)/Total contracted volumes (tonnes)
––Sustainable volume = any agricultural product in scope of the Sustainable Agriculture programme, that has been:
––cultivated in accordance with an approved Code of Practice and
––has been allocated to HEINEKEN by our supplier, in accordance with the mass balance approach.
Scope:
48 HEINEKEN operating companies
Percentage (%)
agricultural raw
materials locally
sourced in Africa*
Commitment:
60% of all agricultural raw materials sourced in the Africa and Middle East region for use in the region by 2020
Measurement/units:
Local raw materials as a percentage of total raw materials in metric tons
Percentage of metric tons
Key definitions:
Quantity (in tons) of agricultural ‘extract’ producing raw materials (plus hops) that are cultivated in the Africa and
Middle East region and that are used in the manufacture of beers, soft drinks, cider, wine and spirits at our own production
facilities in that region
Scope:
Consolidated operating companies (excluding minority JV's) in Africa and the Middle East: Lebanon, Egypt, Tunisia, Algeria,
Sierra Leone, Nigeria, DRC, Rwanda, Burundi, Ethiopia, South Africa, La Réunion
Number of
different local
sourcing initiatives
Commitment:
Refer to the above Local Sourcing target
Measurement/units:
Number of operating companies and local value chains
Key definitions:
HEINEKEN operating companies sourcing any agricultural raw material within the AME Region. Each value chain is counted
individually
Scope:
Consolidated operating companies (excluding minority JV's) in Africa and the Middle East: Lebanon, Egypt, Tunisia, Algeria,
Sierra Leone, Nigeria, DRC, Rwanda, Burundi, Ethiopia, South Africa, La Réunion
Number of
farmers and
families impacted
Focus area:
Refer to the above Local Sourcing target
Measurement/units:
Calculation based on the total quantity of agricultural raw materials purchased (tons), divided by the average farm size (hectares)
and the average yield per crop produced (tons per hectare). This gives the estimated number of smallholder farms involved,
which is multiplied by seven (average family size in Africa*) to give an estimation of the total number of beneficiaries:
––Average farm size (hectares) and average yield per hectare from project estimates
––Average family size in Sub Saharan Africa from World Bank estimates.
*Source: World Bank
Key definitions:
Number of smallholder farmers involved x7 to take account of their immediate family members
Scope:
Agricultural value chains in AME operating companies that source from smallholder farmers – Sierra Leone, Côte d'Ivoire,
Nigeria, DRC, Rwanda, Burundi, Ethiopia, South Africa. Large scale commercial farms (e.g. barley in Egypt) are not included
Assumptions:
Average farm size (hectares) and average yield per hectare from project estimates. Average family size in Sub Saharan Africa
from World Bank estimates
* Deloitte has provided external, limited assurance on this indicator
09 Heineken N.V. Annual Report 2016
Appendix: basis of preparation non-financial indicators
Sourcing sustainably (continued)
Percentage
(%) operating
companies
compliant 4-step
Supplier Code
Procedure/
Number of
suppliers involved
in our four step
programme*
Commitment:
2018: 95% compliance with four-step Supplier Code Procedure
2020: Ongoing compliance with our Supplier Code Procedure
Measurement/units:
Measured as the average performance over the four steps of the programme of the Supplier Code Procedure, per operating
company and then taking the average of all in scope operating companies:
––Step 1: percentage of the suppliers that have signed Supplier Code compliance statement (or authorised derogation)
––Step 2: percentage of suppliers with Supplier Code Record for which the Supplier Risk Analysis was completed
––Step 3: percentage of potentially high risk suppliers identified in step 2, with valid scorecard on EcoVadis platform
(or authorised derogation)
––Step 4: percentage of required site audits conducted and all non-compliances closed out within applicable timelines.
(% step 1 + % step 2 + % step 3 + % step 4)
4
Key definitions:
Supplier Code:
The HEINEKEN Supplier Code, applicable to all our suppliers, provides clear guidelines for how we expect them to act in the areas
of Integrity and Business Conduct, Human Rights, and the Environment
Step one: Signing
We aspire only to do business with suppliers who share our values. By signing the HEINEKEN Supplier Code, our suppliers agree
to comply with our principles of integrity, environmental care and human rights, which are based on International Labour
Organisation standards
Step two: Risk analysis
The intensity with which we monitor compliance against our Supplier Code depends on the risk profile of a supplier. Our supplier
risk analysis (SRA) tool identifies suppliers based on their type of business and level of supplier-specific risk. All potentially high-risk
suppliers are required to go through step three of the programme
Step three: Monitoring
We use the EcoVadis platform and scorecard to assess compliance with our code, monitor performance and identify areas for
improvement. Suppliers complete the assessment by providing evidence that is assessed and completed by EcoVadis with a 360°
scan. Suppliers considered high-risk, based on the scorecard, are be subject to a site audit according to Step four
Step four: Site audit
The final step is a site audit by a third party using the SMETA four-pillar protocol as the basic assessment criteria. This way we
contribute to (and use) the database of audits held by Aim-Progress, the global responsible-sourcing platform used by the world’s
leading consumer goods companies
Scope:
72 HEINEKEN operating companies, Head Office, HEINEKEN Global Procurement
Number of
contract
terminations
Commitment:
Refer to the commitment on the compliance with 4-step Supplier Code procedure
Measurement/units:
Number of suppliers with which any commercial relationship ended, triggered by:
a) unwilling to sign our supplier code
b) refused to subscribe to EcoVadis and
c) refused to undergo a site audit.
Key Definitions:
See measurement section above
Scope:
72 HEINEKEN operating companies, Head Office, HEINEKEN Global Procurement
* Deloitte has provided external, limited assurance on this indicator
10 Heineken N.V. Annual Report 2016
Appendix: basis of preparation non-financial indicators
Advocating responsible consumption
Percentage (%)
of media spend
for Heineken®
in supporting
dedicated
responsible
consumption
campaign in at
least 50% of our
market volume*
Commitment:
2018: We commit to invest a minimum of 10% of our media spend for the Heineken® brand in supporting our dedicated
responsible consumption message in markets representing at least 50% of our global volumes
2020: Make responsible consumption aspirational through Heineken®
Measurement/units:
Total EHR 2016 Invested (for operating companies in scope) (numerator)/Total Advertisement Media Investment 2016
(denominator), %
Key definitions:
All expenses incurred for placing and broadcasting Heineken® brand dedicated responsible consumption advertisements in various
paid media and other specific responsible consumption campaign activities, across selected operating companies totalling at least
50% of global Heineken® volumes, amounting to 10% of their actual Heineken® media spend
Scope:
14 HEINEKEN operating companies (These markets represent more than 50% of the Heineken® brand global volume)
Number of
operating
companies
have and report
publicly on a
measurable
partnership aimed
at addressing
alcohol abuse*
Commitment:
The Partnerships for Progress (PfP) were formalised as a global programme, to demonstrate HEINEKEN’s belief in targeted
interventions to tackle specific alcohol related harm issues (drink-driving, under-aged consumption, excessive consumption).
It also emphasises our belief that any solution will require all stakeholders to work together
Measurement/units:
The list includes HEINEKEN operating companies, which have a partnership aimed at addressing alcohol abuse
Key definitions:
––Working closely with third parties like local governments, NGOs and specialists, these partnerships address alcohol-related harm
on issues like underage drinking, drinking and driving or excessive drinking
––Relevant issue: OpCos decide on a priority issue in their market. Options are: underage drinking, drinking and driving, excessive
drinking and ‘other’ by operating company defined option
––Partnership: actively collaborating with a third party. A third party might be: an NGO (e.g. a charity, association, chamber of
commerce); a government department or agency (e.g. a transport ministry, health agency, police); a major customer or event
organiser. If a partner is an alcohol industry association, the project activity must be exclusive to HEINEKEN and not with other
industry association members.
Scope:
In scope are all HEINEKEN operational companies markets, except of Islamic countries, export markets, markets where we have
a Joint Venture, and one minimal-volume market (Laos) for who allocating resource is unrealistic.
At the time of the commitment, South Africa was not in scope
Low- and noalcohol as % of
our global volume
Focus area:
Low- and no-alcohol options in total consolidated volume
Measurement/units:
Total Low & No Alcohol volume/Total Consolidated Beer & Cider volume
Key definitions:
Low & No Alcohol = all beer, cider, hop and/or malt based drinks with an ABV of 3.5% or less. This does not include soft drinks
Global volume = Total Consolidated Beer & Cider volume (excl. JV & Licences)
Scope:
All operating companies excluding JV's (Consolidated volume)
Ingredients
and nutrition
information on
pack for all our
beer brands
in the EU*
Commitment:
2016 milestone: Provide ingredients and nutrition information on pack for all our beer brands in the EU ahead of industry.
We committed to include ingredients and energy values (kcal) per 100ml, plus a link on the packaging referring to a website
where consumers can obtain further information on fat, sugars, protein and salt
Measurement/units:
Number of beer brands produced and sold by HEINEKEN EU operating companies in the EU
Key Definitions:
This involves beer brands produced and sold by HEINEKEN operating companies in the European Union.
Commitment is only applicable to consumer-facing products (bottles, cans)
Scope:
All EU operating companies beers produced and sold by HEINEKEN operating companies in EU. Imported low volume
non-European brands are not in scope
* Deloitte has provided external, limited assurance on this indicator
11 Heineken N.V. Annual Report 2016
Appendix: basis of preparation non-financial indicators
Promoting health and safety
Number of
HEINEKEN
operating
companies having
approved plans
in place for Life
Saving Rules
actions*
Commitment:
The HEINEKEN Life Saving Rules are effective 1 January 2016. In Q1 2016 General Managers, global and regional offices,
had to conduct an assessment to define an action plan to close existing gaps versus the Life Saving Rules
Measurement/units:
All non-compliances versus the Life Saving Rules have corrective actions identified in the Life Saving Rules action plan
Key definitions:
Our ‘Safety First’ approach is focused on improving safety across the whole company. The 12 rules set out clear and simple
‘do’s and don’ts’ for our highest-risk activities. All operating companies are required to assess their safety performance
and close any gaps through action plans.
All HEINEKEN operating companies have an approved plan in place for Life Saving Rules actions
Scope:
HEINEKEN operating companies and subsidiaries where HEINEKEN holds a majority share or has management control
Total number
of fatal accidents
and breakdown*
Commitment:
Zero fatal accidents
Measurement/units:
Number of work-related fatal accidents
Key definitions:
––Work-related fatal accident means occupational accident leading to death. All work-related fatal accidents of permanent,
fixed-term or temporary personnel. Including work related fatal accidents occurring outside the premises owned or rented by
a HEINEKEN Company, such as during outlet visits, business travel, participation in courses or visits to conferences and fairs
––Any fatal accidents involving permanent, fixed-term or temporary personnel in case the fatal accident occurred on the
premises owned or rented by the HEINEKEN Company (e.g. headquarters, the production or warehousing site (incl. employee
housing when applicable) and HORECA (hotels, restaurants and cafés)
––Any fatal accidents when occurring with HEINEKEN Company assets (e.g. trucks), HEINEKEN materials (e.g. promotion
materials), HEINEKEN Company products or HEINEKEN Company services (e.g. events), including such fatal accidents involving
contractor personnel when work was carried out as ordered by or on behalf of the HEINEKEN Company. NB this excludes fatal
accidents of members of the public due to use of HEINEKEN products
––Fatal accidents of permanent, fixed-term or temporary personnel while commuting
––Fatal accidents to suppliers delivering raw materials, auxiliary materials and packaging materials are only in scope
if a connection can be made to the HEINEKEN Company (e.g. drunk driving).
Scope:
HEINEKEN operating companies and subsidiaries where HEINEKEN holds a majority share or has management control
Total number
of accidents
company-wide/
Accident
frequency/Lost
days of company
personnel
company-wide*
Commitment:
10% of accident frequency reduction within HEINEKEN operating companies
Reporting period:
Current reporting period: 1 December 2015 – 30 November 2016. For the years ended at 31 December 2014 and 2015
the reporting period is 1 January – 31 December
Measurement/units:
Number of work-related accidents, number of lost days of company personnel company-wide and number of accidents per 100 FTE.
Formula for accident frequency is number of accidents per 100 FTE
Key definitions:
––An accident which resulted in permanent disability or which requires hospitalisation for more than 24 hours or resulting
in more than one lost day
––Lost Days are counted from the first day after the case until the day the person returns to normal duties at work. All calendar
days are counted. In case the lost day period starts later than the first day after the case the calculations starts from that day
––Accident frequency is the number of accidents resulting in absence from work per 100 FTE. This is an indicator of the state
of health and safety at the workplace
––Accident severity is the number of days lost from work as a result of disabling injuries per 100 FTE.
Scope:
HEINEKEN operating companies and subsidiaries where HEINEKEN holds a majority share or has management control
* Deloitte has provided external, limited assurance on this indicator
12 Heineken N.V. Annual Report 2016
Appendix: basis of preparation non-financial indicators
Growing with communities
Total tax
contribution
per category*
Focus area:
Total tax contribution per category
Measurement/units:
EUR and %
Key Definitions:
See scope section below
Scope:
––Corporate income tax paid: cash flows arising from taxes on income, reported by the fully consolidated Heineken companies
––Total tax contribution: the tax payments made by the fully consolidated Heineken companies during the calendar year.
The total tax contribution includes a limited degree of estimation. The scope of total tax contribution is limited to the
consolidated reporting entities (not JVs and associates). The categories are:
––Corporate income tax paid
––Excise duties paid
––Net VAT paid
––Employee taxes paid (incl. social security contributions, but excluding pension contributions)
––Other taxes paid.
––Effective income tax rate: income tax expense expressed as a percentage of the profit before income tax, adjusted for share
of profit of associates and joint ventures and impairments thereof (net of income tax)
––Beia: before exceptional items and amortisation of acquisition-related intangible assets
Assumptions:
Only tax effectively paid during the period shall be reported (not necessarily the same as tax accrued)
Total direct
contributions
operating
companies
Focus area:
Direct contributions operating companies
Measurement/units:
For total contributions: in EURO million. We split out these contributions using % in categories, to define how we contributed,
motive for contribution, where we contributed (regions) and what we supported
Key definitions:
Donations as a voluntary engagement with charitable organisations that extends beyond our core business activities,
to help address a range of wider issues in the communities where we do business
Scope:
All consolidated companies
Total contribution
HEINEKEN Africa
Foundation
Focus area:
Projects of HEINEKEN Africa Foundation. Foundation has committed €8.1 million to 94 projects.
Scope:
Projects run by the sub-Saharan African operating companies.
Further information can be found on http://africafoundation.heineken.com/home/
* Deloitte has provided external, limited assurance on this indicator
13 Heineken N.V. Annual Report 2016
Appendix: basis of preparation non-financial indicators
Values and behaviours
Speak Up policy
(number of reports)
Focus area:
Speak Up procedure and reporting
Measurement/units:
Count of individual reports (#) and % per break-down topic. Also break-down per substantiated/unsubstantiated reports
(in % of total)
For total: count of individual reports. For % per topic: # of reports in topic/total number of reports x 100). For % substantiated/
unsubstantiated: # of reports substantiated/total number of reports x 100
Key definitions:
––The number of Speak Up reports is the total number of reports received via our Speak Up channels in which reporters raised
a concern in regard to a (possible) breach of the HEINEKEN Code of Business Conduct
––A break-down per topic is presented to give insight into the main topics of said Speak Up reports. A break-down into
substantiated/unsubstantiated reports is provided to give insight into the number of reports that were proven to be
substantiated.
Scope:
All HEINEKEN operating companies
Training Code of
Business Conduct
(number of
employees)
Focus area:
Trainings on Code of Business Conduct
Measurement/units:
Count of total number of currently employed employees that have completed the COBC training.
Count of unique training completions
Key definitions:
The Code of Business Conduct training is a training that has to be completed by all HEINEKEN employees. It is expected to be
completed as part of the induction for new joiners. Thereafter it is expected to be completed regularly. The training is facilitated
by an e-learning, which can be completed online, as well as during a classroom session for those employees without access to their
own workstation
A training completion is counted if (i) an employee has completed the e-learning (this is automatically registered in a database),
or (ii) if an employee has attended a classroom training and signed of an attendance form
Scope:
All HEINEKEN operating companies
Training antiBribery (number
of employees)
Focus area:
Training on anti-bribery procedures
Measurement/units:
Count of total number of employees that have completed the anti-bribery training
Count of unique training completions (#) for modules 1 and 2 combined
Key definitions:
The anti-bribery training (in e-learning format) currently consists of two training modules. The training is mandatory for a selected
audience (those above a certain job grade and those considered to be risk groups. This is determined by our operating companies
Training Coordinators)
A training completion is counted if an employee has completed the e-learning (this is automatically registered in a database)
Scope:
All HEINEKEN operating companies, however, for a selected audience (determined by the operating companies)